—(1) A public company may reduce its share capital in any way by a special resolution if the company —
sends to the Comptroller a notice —
stating that the resolution has been passed; and
containing the text of the resolution and the resolution date,
within 8 days beginning with the resolution date;
meets the solvency requirements; and
meets such publicity requirements as may be prescribed by the Minister,
but the resolution and the reduction of the share capital shall take effect only as provided by section 78E.
(2) Notwithstanding subsection (1), the company need not meet the solvency requirements if the reduction of share capital is solely by way of cancellation of any paid-up share capital which is lost or unrepresented by available assets.
(3) The company meets the solvency requirements if —
all the directors of the company make a solvency statement in relation to the reduction of share capital;
the statement is made —
in time for subsection (4)(a) to be complied with; but
not before the beginning of the period of 22 days ending with the resolution date; and
a copy of the solvency statement is lodged with the Registrar, together with the copy of the resolution required to be lodged with the Registrar under section 186, within 15 days beginning with the resolution date.
(4) Unless subsection (2) applies, the company shall —
throughout the meeting at which the resolution is to be passed, make the solvency statement or a copy of it available for inspection by the members at the meeting; and
throughout the 6 weeks beginning with the resolution date, make the solvency statement or a copy of it available at the company’s registered office for inspection free of charge by any creditor of the company.
(5) The resolution does not become invalid by virtue only of a contravention of subsection (4), but every officer of the company who is in default shall be guilty of an offence.
(6) Any requirement under subsection (3)(c) or (4)(b) ceases if the resolution is revoked.
[UK, 1985, ss. 52, 53, 88]